Peru Port Row Worsens As Chinese Firm Insists On Original Terms

The Chinese state-owned company at the center of a dispute over operations of a megaport it is building on Peru's Pacific coast insisted on terms agreed with the government, as some local officials have sought to backtrack on the deal, Marco Aquino reported for Reuters.

Cosco began developing Chancay port in 2019 as a hub in the South American Pacific and a key growth driver for Peru. I Photo: Cosco Shipping (South America) Co. Ltda. Linkedin

Hong Kong-based Cosco Shipping Ports will defend its legal rights to provide services as the exclusive operator of the deepwater Chancay Port Terminal under "terms that were agreed at the beginning of this investment," the firm said.

Cosco added that the legal controversy has harmed the project and cautioned against imposing new rules on ports that some regulators have said they might consider.

Cosco began developing Chancay port in 2019 as a hub in the South American Pacific and a key growth driver for Peru.

In 2021, Peru's National Port Authority (APN) awarded Cosco the exclusive right to run Chancay, but said in March that it never had the legal authority to grant it. It blamed an "administrative error" and asked a judge to void the terms.

Cosco responded that it was evaluating the impact of the decision. Cosco, which provides marine transportation services, is expected to invest some $1.3 billion in the first stage of the $3.5 billion project, with more than 70% of construction completed.